15 July 2015 – Expansión
Colonial, the first Spanish real estate company to issue debt, has purchased an office building in Madrid, located on Calle Príncipe de Vergara, 112, for €45 million.
In fact, the group has spent €31 million on the acquisition of the building, and plans to invest a further €14 million on the renovation of the property.
Colonial explained that it plans to demolish the current building and build a nine-floor office building on the side, which will include the latest technologies and material innovations and the “most prestigious” environmental and sustainability certificates.
The new office building will have a total above ground surface area of 11,400 m2, spread over several floors.
Colonial plans to invest €300 million in total this year, after Villar Mir increased its shareholding in the company to 24.4%, to become the largest shareholder, ahead of the Qatar sovereign fund (13.1%), MoraBank and the Santo Domingo group (both own 7%) and three international investment funds (3% each).
The transaction comes after the company invested €40 million on the purchase of a building on Calle Estébanez Calderón in Madrid, a stone’s throw from the Paseo de la Castellana, which it will also demolish to build a new office building. It also acquired another office building in the centre of Paris for €68 million. That ‘Art Deco’ style property has a surface area of 6,000 m2 and is located in the business district of the French capital.
Original story: Expansión
Translation: Carmel Drake